CHANGE-IN-OWNERSHIP SPLIT-ROLL BILL TO BE HEARD NEXT WEEK

AB 2372 (Ammiano; D-San Francisco) is making another attempt to enact a split-roll property tax bill through tinkering with the state’s change in ownership rules. This bill is scheduled to be heard in the Assembly Revenue and Taxation in two weeks.

The idea of a split roll property tax has been fully vetted and consistently rejected since the passage of Proposition 13 in 1978. While some believe that a split roll would bring in additional revenue, it would stifle the state’s economic growth in the long term. From what is known about the economic impacts of split roll, it remains an ill-advised idea.

The current acquisition-based value system has had a positive economic effect on California. If a split roll system is enacted, a large share of California property no longer will be protected by the limitations on property tax assessments established by voters when they approved Proposition 13, creating a significant economic threat to California.

The bill will be heard on Tuesday in the Assembly Revenue and Taxation Committee. Although the bill needs a 2/3’s vote on the Floor, it only needs a majority vote to move out of this committee. We are working this bill very hard and hope to keep it in committee.

Click here is our letter which outlines in more detail our policy points.